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DECLASSIFIED UNDER AUTHORITY OF THE
INTERAGENCY SECURITY CLASSIFICATION APPEALS PANEL,
E.0. 13526, SECTION 5.3(b)(3)

ISCAP APPEAL NO. 2013-062, document no. 2
DECLASSIFICATION DATE: March 18, 2014

September 3, 1969

BY LIAISON '

Honorable Richard Helms
Director

Central Intelligence Agency
Washington, D. C.

Dear Mr. Helms:

As you are aware, this Bureau has been conducting
an investigation' of Dr. Zalman Mordecai Shapiro, head of
the nuclear processing firm, NUiiEC, Apollo, Pennsylvania.,
since May, 1968. Copies of reports covering our inquiries,
including a summary report prepared by our Pittsburgh Office
under date of February 18, 1969, have been furnished to your
Agency on a continuing basis,

Shapiro ^^as interviewed by representatives of the

( Atomic Energy Commission (AEG) on Yoigust 14, 1969, concerning
his relationship with Israeli officials. On the basis of
information developed during this interview, particularly
/ Shapiro's statement that throughout his associations with
! Israeli officials he has never been asked to furnish classified
information, has never furnished, and would not, if asked to,
furnish such information to unauthorized persons, the AEG has
, advised that it does not contemplate further action in this
\ matter at this time.

We have conducted a thorough and extended inves-
tigation of Shapiro for more than a year, including substantial

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Honorable Richard Helms

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physical surveillance coverage. We have developed information
clearly pointing to Shapiro's pronounced pro-Israeli S3rmpathies
and, close contacts V7ith"'Tsraeli officials, |

I It is believed most unlikely

that further investigation will develop any stronger facts in
connection with the subject's association with Israeli officials
The basis of the security risk posed by the subject lies in
his, continuing access to sensitive information and material
and it is believed the only effective way to counter this risk,
would be to preclude Shapiro from such access, specifically
by terminating his classified contracts and lifting his security
clearances. However, after careful consideration, including
an interview with Shapiro, AEG has advised that it plans no
further action at this time.

Under these circumstances, we are discontinuing our
active investigation of the subject. We will, of course,
continue to keep interested agencies advised of any pertinent
information concerning the subject which may be received from
our sources.

Sincerely yours.

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